As an estate planning attorney, I meet many people who believe estate planning is only for the wealthy or something they can “figure out later.” In reality, everyone has an estate, and everyone needs a plan – no matter your age, income, or family situation. Without one, the court – not you – will decide what happens to your money, your property, and even your medical care if something unexpected happens.
This guide breaks down the basics of estate planning in a simple and practical way, so you can protect the people you love and stay prepared for the future.
What Is Your Estate?
Your estate is everything you own – large or small.
This includes:
- Bank accounts
- Real estate
- Vehicles
- Furniture and personal belongings
- Retirement accounts
- Life insurance
- Digital assets
When you die, everything you own must legally transfer to someone else. Without instructions from you, the court will rely on state law to decide who receives what, which may not be what you want.
What Is an Estate Plan?
Your estate plan is the legal roadmap that explains:
- What happens to your assets when you die
- Who will care for your minor children
- Who can make financial or medical decisions for you if you become incapacitated
- How you want end-of-life choices handled
These documents protect you during your lifetime and protect your family after you pass away.
Is Retirement Planning Part of Estate Planning?
Your retirement plan is a major part of your financial future, and it plays an important role in your estate plan. Whether you have a pension, a 401(k), or another type of retirement account, you should know:
- How benefits are paid (lump sum or monthly payments)
- Whether benefits stop at your death
- Whether your spouse or children receive payments after your death
- Who your beneficiaries are and whether they are updated
- What happens if you die before or after retirement
Each retirement plan has different rules, so it’s important to review your options regularly and make sure they match your overall estate plan.
The Essential Documents in an Estate Plan
Once you understand your retirement benefits, the next step is to ensure you have the core legal documents in place. These documents work together to protect you, avoid unnecessary court involvement, and guide your loved ones during stressful times.
Revocable Living Trust (RLT)
A revocable living trust is one of the most effective estate planning tools. You create it during your lifetime and can change it anytime while you are able.
A trust allows you to:
- Maintain control over your assets as the trustee
- Name someone to manage your assets if you become incapacitated
- Decide exactly how and when your beneficiaries receive their inheritance
- Avoid probate, which saves time, money, and privacy
- Protect younger or financially inexperienced beneficiaries
Your trust can even include helpful “teaching moments,” such as distributing funds only when certain ages or milestones are reached.
Last Will and Testament
A will lets you:
- Name an executor
- Choose guardians for minor children
- Direct who receives your property
However, a will does not avoid probate – it must still go through the court process. If you die without a will, state law decides who receives your property.
Pour-Over Will
If you have a trust, you will also have a pour-over will.
This ensures that any assets not already transferred to your trust are “poured” into it at your death. Probate may still be required, but everything ultimately ends up in your trust for management and distribution.
Financial Power of Attorney
A financial power of attorney names someone you trust to manage your finances if you cannot. This avoids the costly and time-consuming process of having a court appoint someone to take over.
Medical Power of Attorney
A medical power of attorney allows you to choose who can make healthcare decisions for you if you are unable to speak for yourself. Without this document, your family may need court intervention, and the person appointed may not be who you would choose.
Advance Directive (Living Will)
An advance directive clearly states your end-of-life wishes.
This removes guesswork and helps your loved ones make medical choices with confidence, knowing they are honoring your wishes.
HIPAA Authorization
A HIPAA authorization allows the individuals you choose to receive updates about your medical condition. This provides clarity and reduces confusion during medical emergencies.
Your Next Step
Now that you understand the building blocks of an estate plan, the next step is taking action. The right plan protects your future, reduces stress on your family, and ensures your wishes are honored.
As your estate planning attorney, I am here to help you create a plan that fits your life today and grows with you in the years ahead.
Let’s build a plan that gives you confidence – and gives your loved ones peace of mind.
At Cheever Law, APC, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. The Life & Legacy Planning Session will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.
To learn more about our one-of-a-kind systems and services, contact us or schedule a 15-minute introductory call today.